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CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process

Which technique is most suitable when a manager wants to allocate limited machine hours and labour among products to maximise total profit, where the objective and constraints can be expressed as linear relationships?

Linear programming is the suitable technique. It maximises or minimises a linear objective, such as profit, subject to linear resource constraints like machine hours and labour. Delphi, brainstorming and SWOT are qualitative tools and cannot determine an optimal quantitative allocation of scarce resources.

  1. ALinear programmingCorrect
  2. BDelphi technique
  3. CBrainstorming
  4. DSWOT analysis

Explanation

Linear programming optimises a linear objective such as profit subject to linear constraints such as limited machine hours and labour. Delphi and brainstorming are qualitative methods for gathering opinions or ideas. SWOT is a strategic appraisal tool and does not compute optimal allocations.

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